Gold Weekly Technical Report 19-23/11/2012

Gold was rejected at 1705.00 level, forming a positive candlestick configuration, and hinting it could be in the process of completing a higher low at this level, following the prior low at 1673.00.  RSI is back above 50.00, however for the bullish setup to be confirmed we anticipate a break above 1737.00 to confirm a higher high. In general, we expect the bullish bias to resume this week , where we will watch price action around the 50-days SMA and 1737.00 level for further assurance. A break below 1700.00 will negate the suggested setup.

The trading range for this week is expected among the key support at 1698.00 and key resistance now at 1755.00

The short term trend is to the upside targeting 1945.00 per ounce as far as areas of 1520.00 remain intact with a weekly closing. 

Support 1717.00 1704.00 1698.00 1686.00 1675.00

Resistance 1730.00 1738.00 1750.00 1755.00 1770.00

Recommendation Based on the charts and explanations above, we recommend buying gold above 1710.00 targeting 1737.00 and 1753.00. Stop loss below 1698.00.